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On Energydesk: What do low and volatile oil prices mean for Shell’s Arctic drilling?
New this morning, here’s a good look at the commercial viability of Shell’s Arctic drilling programme. The drilling taking place right now in the Alaskan Chukchi Sea is only in the exploration stage and it could take 10-15 years to reach commercial production of oil. But if the low oil price (currently around $50 a barrel) sticks around until 2030, the near $10 billion Shell has spent could yield paltry returns. We can’t predict the oil price (although many try) – but we do have analysis and comment from a number of experts on the breakeven cost of Shell’s Arctic adventures.

Meanwhile the rich world is struggling to resolve a row over phasing out coal subsidies. The host of the UN climate summit, France, is piling on political pressure to restrict subsidies that help nations export technology for coal power generation. Discussions reopen on the issue in the Organisation for Economic Cooperation and Development on Thursday, but an anonymous source has described the situation as a “total standoff”.

UK’s new opposition government forms: Britain’s Labour Party has a new leader and a new shadow chancellor, John McDonnell, who has argued in the past for a “removal” of the “monopoly of the big six energy companies”.

Lisa Nandy, MP for Wigan, is the new shadow energy and climate change secretary, and “outspoken vegan” Kerry McCarthy of Bristol East is the new shadow minister for the department of the environment and rural affairs.